Sydney

Covering Telstra’s 2.5 million sqm Australian portfolio, the contract sets a record for the largest corporate property services management arrangement in Asia Pacific

SYDNEY, 4 MAY 2010 — Just 45 days after being appointed to a long-term contract to manage Telstra’s property services portfolio across Australia, Jones Lang LaSalle and Telstra have successfully transitioned the entire portfolio of 14,000 properties over to the new management system.

In January, Jones Lang LaSalle was appointed to manage Telstra’s 2.5 million square metre portfolio across Australia in one of the largest arrangements of this type in the Asia Pacific.

The diverse Telstra property portfolio has now been incorporated into the new management structure, under a co-located Telstra/Jones Lang LaSalle partnership team operating from Telstra’s offices throughout Australia.

The transition involved a complex logistical exercise that saw more than 6500 landlords contacted, financial management of 280,000 rental and other invoices changed over to a new payment system and more than 100 staff employed and trained in the management of the portfolio in the one-and-a-half month period that was allocated for the transition.

Jones Lang LaSalle’s Australian CEO Stephen Conry said a transition process of this magnitude would normally take anywhere upwards of three months, so to achieve this with zero disruption to Telstra’s business operations was a great result.

“Corporate property services management is a large component of the Australian commercial property sector and will get bigger. There is increasing demand from major occupiers for end to end real estate solutions that drives greater efficiency and cost reduction.

“Our new partnership with Telstra is a milestone for our business in Australia and reinforces our strategy of focusing on growing our Corporate Solutions business,” Mr Conry said.

Telstra Property Director Vito Chiodo said: “Working closely with Telstra, Jones Lang LaSalle completed the transition quickly and professionally. We now look forward to the next stage of our partnership where we aim to set a new standard for property services in the Australian corporate real estate market and add even greater value to Telstra’s business.”

“We selected Jones Lang LaSalle because they are a global leader in corporate real estate services. Their ability to deliver global best practice into the Australian market will enable Telstra to optimise the performance of our large and complex real estate portfolio,” Mr Chiodo said.

Jones Lang LaSalle was selected after an intensive and competitive selection process. Under the new contract, Jones Lang LaSalle will provide Telstra with an integrated end to end real estate solution. Services to be provided include portfolio strategy, transactions, project management, facilities management, lease administration and sustainability services.

John Forrest, Chief Executive Officer of Corporate Solutions, Asia Pacific highlighted the significance of the appointment.

“The contract sets a new benchmark for the rapidly growing corporate real estate market. Telstra’s portfolio is the largest and most complex to come to market not only in Australia, but across the Asia Pacific region.

“Partnering with Telstra not only cements our position as the leader in providing corporate real estate solutions in Australia, but also across Asia Pacific and globally.

“Our selection by Telstra reflects the value and importance of having a consistent, world-class service delivery platform. The investment that Jones Lang LaSalle has made in people, market leading technology, local service capability and delivering global best practice is central to our ability to help our clients meet their business and real estate objectives,” Mr Forrest said.

As part of Jones Lang LaSalle’s commitment to driving change, Robert Van Bergen will lead the team of more than 70 professionals that will be co-located with Telstra. To take up his appointment Mr Van Bergen is returning to Australia from Singapore after three years leading the Jones Lang LaSalle team servicing its relationship with Microsoft across Asia Pacific.